The Marijuana Industry’s Cash Problem

Business
The Marijuana Industry’s Cash Problem

The legal marijuana industry is booming, but it has a problem, a problem that grows along with its success: cash.

Because of federal law, banks don’t want to touch the cash made by legal cannabis retailers. This means business owners have to find a secure way to transport and secure the cash they have on hand. One of those ways to secure cash is the marijuana “kiosk.”

A new company called Jane is renting out kiosks to retail shops in Colorado; the machines basically work like the deposit function on ATMs. Customers can place their order via touch screen, or an app on their phone, insert the cash and receive a ticket; the ticket is then used to pick up their product, leaving the cash safely inside the machine.

The kiosks also track inventory and payments which, along with the security aspect, allows companies to cut down on “shrinkage” from employee theft and keep better track of how their business is doing.

Technology will solve a lot of the problems that come with the infancy of the legal cannabis industry, but technology can only go so far. In the end the federal government must repeal the prohibition of marijuana and allow states and businesses to do what needs to be done to unleash the economic potential of this industry.

But we all know that might take a while to happen. So for now marijuana businesses must take money that otherwise might go to hiring more people or growing more product and spend it on securing the money they’ve already made. Sure, it would be easier just to put it in a bank – a business which is specifically used for storing money – but the government can never let things be easy.